Can you help solve this problem but use $360,000 as the price of the investment? All other numbers remain the same. NPV with Income Taxes: Straight-Line versus Accelerated Depreciation Carl William, Inc. is a conservatively managed boat company whose motto is, "The old ways are the good ways." Management has alwoys sused straight-line depreciation for tax and external reporting purposes. Although they are reluctant to change, they are aware of the impact of taxes on a project's profitability. Required For a typical $180,000 investment in equipment with a five-year life and no salvage value, determine the present value of the advantage resulting from the use of double-declining balance depreciation as opposed to straight-line depreciation Assume an income tax rate of 21% and a discount rate of 20%. Also assume that there will be a switch from doubledeclining balance to straight-line depreciation in the fourth year. the advantage resulting from the use of double-declining balance depreciation as opposed to straight-line depreciation. Note: Round your answers below to the nearest whole dollar. The initial answer given for the DDB depreciation and the advantage of using it were incorrect. Do we need to compute the Present Value with 40% because its double declining